Achieving net zero stands prominently in Royal Dutch Shell’s corporate strategy, just behind its commitment to shareholders. The oil major has already agreed to reduce the carbon intensity of the energy it sells and aims to become a net-zero emissions business by 2050. Shell says its ambitions are “in step with society’s progress” (‘Shell accelerates drive for net zero emissions with customer first strategy’, Shell, February 11, 2021) towards a lower carbon world. But is this enough?
In a game-changing development, the company was on May 26, 2021 ordered by a judge in the Hague to cut scope 1, 2 and 3 emissions by 45 per cent from 2019 levels by the end of the decade. This captures operational emissions as well as emissions generated from the fuel sold by Shell on the forecourt.
“This is very significant,” explains Tom Tayler, senior manager at Aviva Investors’ Sustainable Finance Centre for Excellence. “Previously, climate litigation led to countries having emissions targets imposed by the courts, most notably in the Netherlands, but it is the first time a company has been ordered to cut emissions by the courts.”
